1. Physical distribution channels refer to the methods used to transfer products from production to customers. 2. Companies have a variety of alternative channels to choose from to reach customers, often using a mix to target different buyer segments. 3. Alternative channels are described by the type and number of intermediaries used as well as the terms of responsibilities between members. Common alternatives include manufacturer direct to retail, manufacturer to wholesaler to retail, mail order, internet shopping, and factory direct to home or business.